Chapter 6 presents the supply side of the market using an approach parallel to that of the demand side of the market in Chapter 5. The chapter presents the material in a way that illustrates the second core principle of the textbook, that marginal benefits should equal marginal costs Chapter 5 presents the demand curve as derived from marginal benefit and Chapter 6 presents the supply curve as derived from marginal costs
PART ONE INTRODUCTION it must also allocate the output of goods and services that they produce. It must decide who will eat caviar and who will eat potatoes. It must decide who will drive a porsche and who will take the bus The management of societys resources is important because resources are scarcity
Chapter 5 presents the material in a way that illustrates the core principle of the textbook, that marginal benefits should equal marginal costs The chapter presents the demand curve as derived from marginal benefits. Chapter 6 presents the supply curve as derived from marginal costs These two chapters provide the details behind the principle that Mc- MB and give students a solid